Mr Justice Derefaka, Technical Adviser, Gas Business and Policy Implementation, to Minister of State for Petroleum Resources Timipre Sylva, says the Federal Government’s autogas scheme will create two million jobs annually.
He said this in Lagos on Saturday during a TEDx programme on power and energy.
Derefaka said the autogas scheme was initiated by the National Gas Expansion Programme, in collaboration with the Nigerian National Petroleum Corporation (NNPC) and other stakeholders with their technical and financing partners.
He said that the major objective of the scheme was to introduce autogas as an alternative fuel for automobiles, adding the project was considered expedient, particularly of the recent hike on the pump price of Premium Motor Spirit (PMS).
He said; “The autogas scheme shall be self-financing and self-sustainable; and converted vehicles can refill gas at any available gas refuelling station.
“Liquefied Petroleum Gas, Compressed Natural Gas and Liquefied Natural Gas will be retailed at affordable prices, while the gas will be available and accessible.
“The scheme will generate over two million jobs per annum and reduce carbon emissions.”
Derefaka said that as an enabler, the Federal Government would secure gas supplies for the scheme from Joint Ventures/Products Sharing Contracts with the NNPC for the processing of wet gas at designated gas fields.
He said that the Central Bank of Nigeria had created a N250 billion intervention fund to mitigate the funding constraints with regard to financing the acquisition of vehicle conversion equipment.
Derefaka said that 9,000 stations had been identified for co-location of autogas dispensing points nationwide, while 46 NNPC-owned stations would be involved in the project by the end of 2020.
He added that 50 conversion centres were currently undergoing an upgrade for mass vehicle conversion and training purposes.
Derefaka said that over 30, 000 vehicles were already running on dual fuels in the country.
He stressed that autogas was cheaper, safer and cleaner than the PMS (petrol), adding that the scheme particularly had the potential of boosting the economic growth and development of the country.